This refers to the inspection and subsequent investigation by the U.S.
Nuclear Regulatory Commission (NRC) Office of Investigations (OI) into
information reported to the NRC by the Commonwealth Edison Company (ComEd).
On January 14, 1998, ComEd representatives notified the NRC that Safeguards
Information (SGI) was not locked in a security storage container while
the SGI was unattended at the Zion Station from approximately July 1997
to January 14, 1998. ComEd representatives recontacted the NRC on January
22, 1998, and reported that additional unattended and unprotected SGI
documents had been found at the same location.

Based on the information developed during the NRC inspection, the OI investigation,
ComEd's investigation, and the information provided in ComEd's letter
dated March 18, 1999, in response to the February 16, 1999 letter from
the NRC, the NRC has determined that a violation of NRC requirements occurred.
The violation is cited in the enclosed Notice of Violation (Notice) and
the circumstances surrounding it are described in detail in the inspection
report, the investigation reports, the February 16, 1999 letter from the
NRC, and the ComEd letter dated March 18, 1999. In summary, a lead electrical
designer, a supervisor, at the Zion Station willfully failed to protect
unattended SGI from unauthorized disclosure by storing the SGI in open
packages on the floor of his work cubicle in the Design Engineering Department,
which was located outside of the protected area at the Zion Station. The
willful actions of this supervisor placed ComEd in violation of 10 CFR 73.21(d)(2).

The NRC recognizes that the SGI in this case would not have assisted an
individual in an attempted act of radiological sabotage or theft of strategic
special nuclear material. Nevertheless, the NRC expects and demands that
all employees, especially supervisors, follow all established procedures
to ensure SGI is protected from unauthorized disclosure. Unfortunately,
that was not the case in this instance, as a supervisor willfully stored
SGI on the floor of his work area and not in a locked security container
while the SGI was unattended. Therefore, this violation has been categorized
in accordance with the "General Statement of Policy and Procedure for
NRC Enforcement Actions" (Enforcement Policy), NUREG-1600, at Severity
Level III.

In accordance with the Enforcement Policy, a base civil penalty of $55,000
is considered for a Severity Level III violation. Because the Zion Station
was the subject of an escalated enforcement action within the two years
preceding this Severity Level III violation,
(1)
the NRC considered whether credit was warranted for
Identification
and
Corrective Action
in accordance with the civil penalty assessment
process in Section VI.B.2 of the Enforcement Policy. Credit was given
for
Identification
because ComEd identified the violation and
notified the NRC. Credit was also given for
Corrective Action
because of the immediate and long term measures taken by ComEd. The corrective
actions are described in Section S8.1.b of the inspection report, and
include, but are not limited to: (1) retrieving the SGI and transferring
it to the site security organization; (2) briefing employees of the Design
Engineering Department about the incident; (3) retraining those employees
on the proper handling and storage of SGI; and (4) disciplining and
retraining the senior electrical designer. Also, the volume of SGI on
site was greatly reduced with the cessation of nuclear operations at the
Zion Station.

Therefore, to encourage prompt identification and comprehensive correction
of violations, I have been authorized, after consultation with the Director,
NRC Office of Enforcement, not to propose a civil penalty for this Severity
Level III violation. However, significant violations in the future could
result in a civil penalty.

The NRC has concluded that information regarding the reason for the enclosed
violation, the corrective actions taken and planned to correct the violation
and prevent recurrence and the dates when full compliance was achieved
is adequately addressed on the docket in NRC Inspection Report Nos. 50-295/98002(DRS);
50-304/98002(DRS) and in a March 18, 1999, letter from ComEd. Therefore,
you are not required to respond to this letter unless the description
therein does not accurately reflect your corrective actions or your position.
Should you choose to respond in writing, your response should be clearly
marked as a "Response to Apparent Violation EA 98-558," and should include
for each apparent violation: (1) the reason for the apparent violation,
or, if contested, the basis for disputing the apparent violation; (2)
the corrective steps that have been taken and the results achieved; (3)
the corrective steps that will be taken to avoid further violations; and
(4) the date when full compliance will be achieved. Your response should
be submitted under oath or affirmation and may reference or include previous
docketed correspondence, if the correspondence adequately addresses the
required response. The response should be addressed to the NRC Document
Control Desk, Washington, DC 20555, with copies to the Director, NRC Office
of Enforcement, Washington, DC 20555, the Regional Administrator and Enforcement
Officer, U.S. Nuclear Regulatory Commission, 801 Warrenville Road, Lisle,
IL 60532-4351.

In accordance with 10 CFR 2.790 of the NRC's "Rules of Practice," a copy
of this letter, its enclosure, and your response (if you choose to provide
one) will be placed in the NRC Public Document Room (PDR). To the extent
possible, your response should not include any personal privacy, proprietary,
or safeguards information so that it can be placed in the PDR without
redaction.

During an NRC inspection and an NRC investigation concluded on November
12, 1998, a violation of NRC requirements was identified. In accordance
with the "General Statement of Policy and Procedure for NRC Enforcement
Actions," NUREG-1600, the violation is listed below:

10 CFR 73.21(d)(2) requires, in part, that while unattended, Safeguards
Information will be stored in a locked security container.

Contrary to the above, from approximately July 1997 to January 22, 1998,
Safeguards Information was not stored in a locked storage container while
unattended. Specifically, a lead electrical designer willfully stored
electrical design drawings, containing Safeguards Information, in open
packages on the floor of his work cubicle in the Design Engineering Department.
(01013)

This is a Severity Level III violation (Supplement III).

The NRC has concluded that information regarding the reason for the violation,
the corrective actions taken and planned to correct the violation and
prevent recurrence and the dates when full compliance was achieved is
adequately addressed on the docket in NRC Inspection Report Nos. 50-295/98002(DRS);
50-304/98002(DRS) and in a March 18, 1999, letter from ComEd. However,
you are required to submit a written statement or explanation pursuant
to 10 CFR 2.201, if the description therein does not accurately
reflect your corrective actions or your position. In that case, or if
you choose to respond, clearly mark your response as a "Reply to a Notice
of Violation, EA 98-560," and send it to the NRC Document Control Desk,
Washington, DC 20555, with a copy to the Regional Administrator and the
Enforcement Officer, U.S. Nuclear Regulatory Commission, 801 Warrenville
Road, Lisle, IL 60532-4351 within 30 days of the date of the letter transmitting
this Notice of Violation (Notice).

If you contest this enforcement action, you should also provide a copy
of your response, with the basis for your denial, to the Director, Office
of Enforcement, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001.

If you choose to respond, your response will be placed in the NRC Public
Document Room (PDR). Therefore, to the extent possible, the response should
not include any personal privacy, proprietary, or safeguards information
so that it can be placed in the PDR without redaction.

In accordance with 10 CFR 19.11, you may be required to post this Notice
within two working days.

Dated this 9th day of April 1999

1.
A Notice of Violation and Proposed Imposition
of Civil Penalty - $110,000 was issued on January 15, 1998, for a Severity
Level III problem associated with a programmatic breakdown in the implementation
of the fitness for duty program at the Zion Station during 1997 (EA 97-249).